As we find ourselves more than halfway through 2025, it is vital for business owners to remain vigilant regarding their employer responsibilities to prevent penalties and maintain smooth operations. Several upcoming changes and deadlines could have an impact on your business. Here’s what you need to know.
Super Guarantee (SG) – Rate Increase in 2025
One of the biggest changes in 2025 is the increase in the Super Guarantee (SG) rate. Currently set at 11.5%, the SG rate will rise to 12% from 1 July 2025. Super payments must be made quarterly by 28 January, 28 April, 28 July, and 28 October. Late or incorrect payments can result in a Super Guarantee Charge (SGC), which includes penalties and interest. Ensuring timely and accurate super contributions is crucial to maintaining compliance and avoiding unnecessary costs.
Fringe Benefits Tax (FBT) – Are You Liable?
The Fringe Benefits Tax (FBT) year ends on 31 March 2025, and if your business provides benefits such as company cars, entertainment, or employee reimbursements, you may have an FBT liability. To remain compliant, businesses must:
- Identify taxable benefits provided to employees.
- Determine the taxable value to assess any FBT liability.
- Lodge an FBT return by 21 May 2025 (or 25 June 2025 if using a registered tax agent).
- Maintain accurate records to support compliance and minimise audit risks.
Failure to report FBT correctly can result in significant penalties, so reviewing your obligations early is essential.
PAYG Withholding – Be Prepared for Tax Rate Changes
Employers withholding tax from employee wages should be aware that tax rates may change from 1 July 2025. It’s essential to use the ATO’s tax withheld calculator to ensure the correct amount is deducted. Incorrect withholding can lead to compliance issues, so keeping up with tax rate adjustments is key.
Single Touch Payroll (STP) – Reporting Deadline
All businesses must finalise their Single Touch Payroll (STP) reporting by 14 July 2025 to ensure employees receive their tax-ready income statements on time. Employers with closely held payees may have a later deadline, but it’s best to submit all payroll data promptly to avoid compliance issues.
Need Help? Let’s Simplify Your Employer Obligations
Managing employer obligations can be complex, but you don’t have to handle it alone. Our team specialises in tax and compliance services, helping businesses navigate ATO requirements with confidence. If you need guidance on superannuation, FBT, PAYG withholding, or STP, get in touch with us today. We’re here to help you stay compliant and focus on growing your business.
About Chan & Naylor
Established in 1990, Chan & Naylor has been a trusted partner for thousands of businesses and investors across Australia. Choosing Chan & Naylor Pymble means you’re not just selecting a service provider; you’re gaining a partner aligned with your business goals. You’ll have access to a dedicated client manager supported by a team of accountants that specialises in business tax and investments. Contact us today so we can discuss how we can help you.
Disclaimer
This article serves as general information only and may not account for the unique circumstances of individual readers. For personalised and strategic solutions tailored to your specific situation, we invite you to seek professional advice from Chan & Naylor. Our highly experienced team is dedicated to helping you navigate the complexities of Australian taxation, ensuring that your financial strategies align with the latest regulations.
